Cornwall has been a prime destination for domestic and foreign tourists in the UK for many decades. People flock from far and wide to see the beautiful coastlines and old castles and to dine out on the world-famous pasties and seafood.
As a desirable holiday destination, Cornwall has seen many wealthy holidaymakers buying second homes and driving up local prices, including the average house price. However, in the last few years, a growing number of remote workers have also looked to Cornwall as a permanent base and not just a holiday destination. This has led to an even steeper rise in Cornish house prices, and the region now has one of the fastest rates of increasing house prices in the country.
So what is the average house price in Cornwall? How does it compare with other parts of the country? And what is behind the rapid rise in house prices in Cornwall?
We are going to answer these questions and more as we explore house prices in Cornwall.
What is the average house price in Cornwall?
Land Registry figures show that the average house price in Cornwall in May 2022 was £312,083. This represents a 1.9% rise from April and a 17.3% increase over the last year.
First-time buyers buying property in Cornwall spent £255,000 on average, which is £37,000 more than in May 2021 and £78,000 more than in May 2017. Former owner-occupiers paid £353,000 on average in May 2022, which is 38.1% more than first-time buyers.
So let’s now jump in and find out how the average house prices in Cornwall compare to other regions in the country.
How do average house prices in Cornwall compare to other regions?
The average price for property in Cornwall as of May 2022 is £312,083. This is nearly £30,000 higher than the average for the rest of the UK, which is £283,496.
However, Cornwall is slightly below the rest of the South West, which had an average house price of £323,418 in May 2022.
The most expensive average property prices in the South West are in the Cotswolds, which had £474,000 average house price in May 2022.
Plymouth has the lowest house prices in the South West, with homes costing £221,000 on average.
The highest property prices across the UK were in Kensington and Chelsea, where the average house price reached £1.5 million.
What types of properties rose the most in value?
Terraced houses in Cornwall saw the highest price rise in May 2022. They increased by 2.2% from April to an average of £247,994. Between May 2021 and May 2022, prices for terraced houses in Cornwall rose by 16.8%.
Detached houses in Cornwall rose by 1.9% from April to May 2022. They also rose the most between May 2021 and May 2022. The average price for a detached house in Cornwall is now £461,091.
Semi-detached properties saw a monthly rise of 1.9% and an annual rise of 18.1%. This puts the current average price for a semi-detached house in Cornwall up to £302,722.
Flats in Cornwall currently average £169,441. This is up by 1.3% from April 2022 and 12.1% from May 2021.
Are house prices rising across the country?
Across the UK, house prices have risen steeply over the last couple of years. The average house price in the UK rose by 12.8% between May 2021 and May 2022.
This means that the 17.3% rise in house prices in Cornwall in the same period is significantly higher than in the rest of the country. 17.3% represents a £46,000 price rise from the previous year.
| Region | Average price May 2022 | Annual change % since May 2021 | Monthly change % since April 2022 |
| East Midlands | £244,060 | 15.2 | 1.9 |
| East of England | £353,574 | 14.8 | 2.6 |
| London | £526,183 | 8.2 | 0.2 |
| North East | £153,592 | 9.7 | -0.1 |
| North West | £205,783 | 11.5 | -0.2 |
| South East | £388,531 | 13.5 | 1.4 |
| South West | £323,418 | 16.9 | 1.0 |
| West Midlands | £247,162 | 14.0 | 2.2 |
| Yorkshire and the Humber | £204,835 | 12.6 | 2.1 |
Source: gov.uk
Are house prices rising throughout the South West region?
The South West – the region Cornwall is situated in – saw the biggest average house price rises between May 2021 and May 2022.
As a region, the South West experienced a rise in average house prices of 16.9%.
So even in the South West region, Cornwall has a higher price rise than most of its neighbours. Cornwall ranked fourth among the 29 local authorities in the South West region.
Between April and May, house prices in Cornwall increased by 1.9%. Again, this put it head of 1.2% average for the UK and ahead of the 1% rise in the whole of the South West region.
The highest annual growth in the South West region was in South Hams, which saw average property prices grow by 22.9% up to £426,000.
The lowest annual growth in the South West region was in the Forest of Dean, where the house prices only grew by 6.9% leading to an overall average price of £291,000.
Why are house prices rising in Cornwall?
During and after the Covid-19 lockdowns, there was an imbalance between supply and demand for properties in the UK. There are two main reasons for this.
First, as more and more jobs became remote, many people living in cities sought to move out from expensive rented accommodation and into more affordable towns where they could buy property, such as parts of Cornwall.
Second, during the lockdowns, a temporary Stamp Duty holiday was introduced. This was brought in to ensure the property market was kept alive during a global catastrophe. While the Stamp Duty did have the desired effect, it also led to a surge in demand for property, which the supply side could not accommodate.
Both of these issues led to high demand and limited supply. There has been an increase in the number of properties sold, but there are still not enough houses to meet the demand. Desirable areas with relatively affordable property, such as Cornwall and other parts of the South West, were most affected.
Will house prices continue to rise?
In recent months, the rise in property prices has started to falter. June 2022 saw a 0.3% rise in the asking price for houses in the UK. This was down from May, which saw a 2.1% rise, and down from April and March, which saw rises of 1.6% and 1.7% respectively.
Rising inflation rates and the cost of living crisis squeezing households up and down the country are putting budgets under pressure. This means there is less demand as people cannot save up the money necessary to put down a deposit on a property they wish to purchase.
Interest rates have also been raised, which means that the amount you get back for saving money is increased. It also means that the amount you have to pay back mortgage lenders also increases. So, as interest rates rise, people are encouraged to save their money rather than spend it.
Are rising property prices bad for Cornwall?
Steadily rising house prices are a sign of a healthy economy and can be good news for the local community as well as estate agents.
As Cornwall’s properties go up in price, there is likely to be a rise in the number of jobs and opportunities in the area and continued development that contributes to the local economy.
However, the rapid increase seen in the last few years has been far beyond a steady rise.
Such a rapid rise makes it hard for first-time buyers to get a foot on the property ladder. As prices rise, the deposit necessary for a mortgage also rises, which means first-time buyers need more savings than ever before to buy their first home.
Rising property prices are also bad news for renters, as landlords are likely to put up rents if mortgage costs go up in an area. All of this leads to other prices rising, such as those in local shops that have to pay rent for the space they operate from. Many local Cornish people may find that they are unable to afford to live in an area that has been their home for generations.
In a healthy economy, rising house prices are matched with rising salaries. However, with wages stagnating and the cost of living crisis taking hold of the country, rising house prices are leading to an imbalance that puts clear water between homeowners, renters, and first-time buyers.
Summary
During the lockdowns of the Covid-19 pandemic, measures were brought in to ensure the housing market was kept alive. These measures, combined with the rise in the number of remote jobs, did work to keep the market active, but they also led to a rapid rise in the average cost of property in the UK. Desirable locations with relatively affordable property, such as Cornwall, saw the steepest increases.
Although the rise in property prices has slowed somewhat in recent months, the average property in Cornwall is still £46,000 more expensive than last year. While this is likely to bring a lot more jobs and development to Cornwall, it also means that many people may end up being priced out of their homes and unable to afford to live there any longer.
